Cash flow is essential to keeping a business functioning. Even high growth and record profits may not be enough to offset a cash flow problem – incoming funds must meet or exceed outgoing cash. If your business is vulnerable to poor cash flow, an Orlando outsourced CFO can help you manage and control your cash flow. Some of the techniques a part-time CFO may use include:
Proactive cash flow management. The more quickly the company’s billing cycle turns over, the more funds are available to invest in company growth. By being proactive and billing early and often, a CFO can boost a business’s cash flow.
Streamlined inventory. Excess inventory ties up cash and hides how often the inventory is actually turning over. This also creates other costs, like storage and waste from obsolete inventory that doesn’t get sold in a timely manner. An outside CFO can evaluate your inventory turnover based on your industry’s standard time frames and help you tighten your inventory processes.
Customer credit monitoring. If your business regularly extends credit to customers, it affects your cash flow. An outsourced CFO can review the credit terms you extend to customers, and restrict them even more if necessary. By reducing outstanding extended credit, the CFO can increase the cash you have on hand as well as preventing potential losses.
Provide oversight. A Orlando outsourced CFO can oversee the entire cash flow process and help control it. In most companies, several people are involved in creating and distributing invoices, depositing payments, approving expenses, cutting checks, and more. Often, some of these functions may be outsourced as well. A CFO can establish relationships with these resources and function as a liaison between them and company management, giving a more accurate picture of cash flow at any given time.
These techniques can help increase cash flow for companies regardless of their size. If your business can benefit from experienced cash flow management, contact CFO Strategic Partners at 407-426-8288 for a free business analysis. We’ll help you review ways that you can improve your company’s cash flow and stabilize your finances.Tags: Billing Cycle, Cash Flow Management, Cash Flow Problem, Checks, Company Management, Credit Monitoring, Customer Credit, Excess Inventory, Inventory Turnover, Invoices, Liaison, Losses, Obsolete Inventory, Oversight, Part Time Cfo, Proactive, Record Profits, Standard Time, Time Frames, Timely Manner
“Our organization was navigating an intense transition involving our government funding partners and public officials. Without the help of CFOSP, we would have experienced severe financial impacts and certainly lost donor confidence.”
CEO Central Florida Historical Society
“I applaud the stellar support provided by our CFO in embracing and understanding our budget priorities and operations that entail hundreds of financial transactions each month and several millions of dollars in expenditures annually. The nature of our business is very complex, yet your firm did not shy away from the challenge of establishing accounting processes and procedures that will sustain us well into the future.”
Kissimmee Chamber of Commerce, Experience Kissimmee
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President, Engineering Firm
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CEO/President, Hotel Corporation
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CEO, Insurance Agency
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President, Florida Architectural Firm